Meta has announced the layoff of 600 employees from its artificial intelligence unit, as part of a restructuring effort aimed at optimizing resources and enhancing its AI strategy.
Meta is set to lay off 600 employees from its artificial intelligence (AI) unit, according to a report by CNBC. This decision was communicated in a memo from Chief AI Officer Alexandr Wang, who joined the company in June as part of Meta’s significant $14.3 billion investment in Scale AI.
The layoffs will affect employees across various segments of Meta’s AI infrastructure, including the Fundamental Artificial Intelligence Research (FAIR) unit and other product-related roles. Notably, employees within TBD Labs, which includes many of the top-tier AI hires brought on board this summer, will not be impacted by these cuts.
Sources indicate that the AI unit had become “bloated,” with different teams, such as FAIR and product-oriented groups, often competing for computing resources. Following the arrival of new hires tasked with establishing Superintelligence Labs, the existing oversized AI unit was inherited, prompting the need for these layoffs. This move is seen as a strategy to streamline operations and solidify Wang’s leadership in guiding Meta’s AI initiatives.
After the layoffs, the workforce at Meta’s Superintelligence Labs will be just under 3,000 employees. The company has informed some employees that their termination date will be November 21, and until that time, they will enter a “non-working notice period.” In a message viewed by CNBC, Meta stated, “During this time, your internal access will be removed and you do not need to do any additional work for Meta. You may use this time to search for another role at Meta.”
In addition to the layoffs in the AI unit, Meta has also reduced staff in its risk division due to advancements in the company’s internal technology. Michel Protti, Meta’s chief compliance and privacy officer of product, notified employees in the risk organization that the company has been transitioning from manual reviews to more automated processes. He noted that this shift has reduced the need for as many roles in certain areas, although he did not disclose the specific number of affected positions.
Protti emphasized that these changes are part of Meta’s broader strategy to invest in “building more global technical controls” over recent years, highlighting the significant progress made in risk management and compliance.
In recent months, Meta has made substantial investments in AI infrastructure and recruitment. The company recently entered into a $27 billion agreement with Blue Owl Capital to fund the Hyperion data center in Louisiana, further underscoring its commitment to advancing its AI capabilities.
As the tech landscape continues to evolve, Meta’s restructuring efforts reflect an ongoing focus on optimizing resources and enhancing its competitive edge in the AI sector.
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